Fitch changes ratings on Home Depot, Lowe’s

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Fitch Rating, one of the nation’s leading credit rating services, has reassessed its outlook on Home Depot and Lowe’s following the retailers’ recent third-quarter earnings releases.

Home Depot received a boost to A- staus, maintaining its stable outlook, based on the Atlanta retailer’s operating momentum, strong cash flow and positive comp-store sales in seven of the past eight quarters.

Home Depot’s shares recently traded at $37.12. Its market capitalization is $57.16 billion

Lowe’s rating was downgraded two levels to BBB+ with a stable outlook. Fitch cited the North Carolina’s company’s soft operating results and its #2 position in the home-improvement industry. Fitch mentioned the housing market, unemployment and the slowly recovering remodeling market as headwinds facing both companies.